DID YOU KNOW THAT… The Dignity Decree has modified the rules on fixed term contracts and staff-leasing?

Official Gazette No. 186 dated 11 August 2018 has published the conversion law (Law No. 96) of Law Decree 87 (the so called Dignity Decree), entered into force on 14 July. Major changes have been applied to the fixed term contract. In particular, a fixed term contract can be entered into without reason for 12 months, after which it requires a specific reason. In any case, the total term of a fixed term contract cannot exceed 24 months, or it will be automatically converted into an open term contract. The maximum number of extensions is reduced to 4; if there is a fifth extension, the contract is automatically deemed an open term contract. For renewals a reason must be provided at all times. The exception to the mandatory inclusion of the reason is represented by extensions and renewals for seasonal work. The term to appeal a fixed term contract is extended from 120 to 180 days. In addition, a 0.5% increase in contributions by the employer becomes due at time of every renewal. The new rules apply to fixed term contract signed after 14 July 2018 and the extensions and renewals effective from 1 November 2018. Staff leasing is governed by the same rules of fixed term contract, except in the case of the provisions regarding the total number of fixed term contracts, right to take precedence and the so called stop-and-go. Fixed term staff leasing can be used up to a maximum of 30% of the overall staff hired with open term contracts; this limitation applies also to fixed term direct cooperation contracts. The offence of fraudulent staff leasing has been reintroduced.